If Tony is budgeting 2500 tpd
3100 tons at 5 grams per ton = 401.9 ounces per day ... 146,704 ounces per year
2500 tons at 5 grams per ton = 498 ounces per day ... 181,913 ounces per year
So from what I can make out we will miss production by 100 ounces per day
If LSG gets the production cost down to $600 and gold at $1600 we will miss $100,000 per day for every day the new mill expansion is not up and running at full potential.
$100,000 per day times 30 days = $3,000,000 our company won't have each month.
If the mill is not ready for 6 months = $18,000,000 our company won't have to pay bills and dividends..!!
Looking at what LSG is doing to conserve money is not a bad thing to replenish the missing $18,000,000
I think LSG will high grade the mine to bring up the revenue. That will tend to hide the mill problem as people read the bottom line.
Can LSG meet the $600 per ounce production costs ???
High grading the mine will allow management to miss targets creating gaps of profits that should be paid to shareholders. Guidance is a tool we have to gauge profits. If that tool is mismanaged it is the shareholder that suffers. The high grading at higher forecast tonnage would put a quicker time line on paying down debt. It would bring even greater profits to the company.
Management will write this off as not a big deal while our money is on the line. No , some of our money is on the line. The rest is lost for a long time. Cutting management bonus will put pain and attention to the problem of poor guidance.